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Business

Indonesian operator to develop digital network for ports

JAKARTA -- State-owned  Telekomunikasi Indonesia, the country's largest telecom operator, plans to spend 200 billion rupiah ($15.74 million) developing a high-speed digital network to help make shipping more efficient at ports controlled by state-run operator Pelabuhan Indonesia (Pelindo). Recently, increased docking times at the country's biggest ports have been pushing up logistics costs for businesses and consumers.

     Tanjung Priok, the main port in the Jakarta area, handles two-thirds of Indonesia's international trade and container traffic. The administration of President Joko Widodo aims to make the country the largest port operator in the world by 2019.

     Telkom's director of enterprises, Muhammad Awaluddin, said Wednesday that the new digital system will cut docking time at Pelindo ports to around five to six hours, three hours shorter than now. The operator and the port have set up a joint venture e-trade logistic company, Integrasi Logistik Cipta Solusi, in 2014 to run the project.

     In 2015, Awaluddin said, Telkom will invest in "Broadband Ports" in 18 areas, including the ports of Banda Aceh, Louth, Kuala Tanjung, Dumai and Long, to improve maritime logistics.

     In addition to the seaport projects, fishing villages and defense program facilities are also getting high-tech upgrades.

     Harry Boediarto, director of sea traffic at the transportation ministry, talked Friday about the need for facilitating infrastructure and communication technology for marine transport activities. Such technology, he said, is needed to realize Widodo's goal of turning Indonesia into the world's maritime hub.

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